Now More Than Ever

In the late 1980s, an insurance crisis threatened the public housing industry. Capacity was shrinking, prices were soaring, and, in many cases, housing organizations that managed to find an insurance company willing to extend coverage were quoted premiums they simply could not afford.

Fast-forward a few decades, and the public and affordable housing industry is facing an insurance crisis once again. Extreme weather events and cybercrime are happening with alarming frequency, the cost of materials has skyrocketed, and nuclear verdicts have become all too common. These factors and more are causing carriers to limit capacity and raise prices—just like they did in the ‘80s.

The difference? The housing industry is in a much better position today than it was in 1987, thanks to a group of public housing organizations whose leaders had the foresight to form an insurance company of their own.

It is apparent now, more than ever, that the housing industry needs an insurance company it can count on. Financially strong and stable, HAI Group continues to write public housing business when others won’t, and to be here when you need us most. Together, we have emerged from 2023 stronger, savvier, and ready to continue the vital work of protecting affordable housing and the people who need it.

A message from our president
and CEO

As I reflect on 2023, I am reminded of how fortunate I am to be the CEO of a company that is dedicated to affordable housing. This singular focus offers multiple strategic benefits, one of which is that it has helped us build a network of influential industry stakeholders from across the United States. Thanks to these relationships, we have a front-row seat to the challenges our members face, along with a powerful national platform from which to address them.

This year, as I traveled across the country meeting with members and industry groups, speaking at housing conferences, and talking with state and local government agencies, one thing became abundantly clear: Now, more than ever, we need to work together to protect and preserve affordable housing.

Insurance is critical to that effort.

Extreme weather events, nuclear verdicts, and other issues beyond our control drove up insurance costs in 2023. At the same time, capacity continued to shrink. Because HAI Group is governed by our members, we understand the effects the hard market has on your organization, and we appreciate how difficult it can be to navigate. So, we got right to work leveraging our network to address the crisis and, more important, offering practical guidance to help members improve their insurability and manage rising costs.

Although 2023 proved challenging, I’m proud to report that AM Best reaffirmed HAI Group’s financial strength as “A” (excellent) and improved the outlook of our financial strength rating from “stable” to “positive,” so you can rest assured that we remain financially stable and able to pay claims when they occur. We were also able to return dividends back to our policyholders, re-capitalize our Loss Prevention Fund, which reimburses selected applicants for risk management efforts, and support your residents by helping to defray the cost of higher education—to date, the HAI Group Scholarship Program has awarded more than $1.5 million. In more good news, retention rates were at an all-time high, and our Net Promoter Score, a measure of customer loyalty, remained well above industry averages.

As always, I’d like to thank our employees for the work they do to keep our members’ operations protected, and for making us a Top Workplace in Connecticut for a fourth consecutive year. I’d like to thank our board and committee members for their guidance, their passion, and their commitment to HAI Group, and I’d like to thank our business partners for supporting us and helping us reach our goals. Finally, I’d like to thank you, our loyal members, for your business, your continued support, and for providing such a vital service to your fellow Americans. I appreciate the trust you put in me, and I am honored to work alongside you.

Ed Malaspina President & CEO

A message from our chair

We have the great privilege of serving some of our country’s most vulnerable people. By providing safe, decent, affordable housing, each one of us plays a vital role in helping individuals and families thrive. Of course, the affordable housing industry is not without its challenges, and 2023 was no exception. We saw a marked increase in extreme weather events, cybercriminals continued to target our organizations, and, as many of you know, insurance premiums continued to climb as capacity continued to shrink.

As chairman of the board of HAI Group, I understand why the insurance crisis is occurring. As a policyholder, I’m acutely aware of the impact it has on our members. Throughout the year, the board worked extensively with HAI Group leadership to educate members about ways to reduce insurance costs, which include reducing risk and re-examining coverages, deductibles, and limits. We encouraged members to contact their dedicated support team, which includes an account executive who is a licensed insurance agent and a risk control consultant who specializes in multifamily affordable housing exposures, and to take advantage of free training and programs like our Loss Prevention Fund, which reimburses select applicants for loss prevention measures. We faced challenging times, but I’m confident the programs and professionals we have in place to support our membership rival even the biggest national carriers. HAI Group’s focus on the multifamily affordable housing market truly sets it apart.

Now, more than ever, Americans need access to affordable housing. And now, more than ever, the affordable housing industry needs an insurance company that is firmly in our corner. One that understands multifamily affordable housing exposures and is prepared to insure them. One that has the financial stability required to cover claims when the unexpected happens. One that not only will keep us informed about emerging threats like cybercrime, but is also prepared to help mitigate them. In short: We need an insurance company that will remain committed to the affordable housing industry while others are exiting all around us.

I’m proud to say that our insurance company has never been stronger. Through disciplined underwriting, savvy expense management, and strategic investment decisions, HAI Group remains well positioned to help our members reduce financial uncertainty and manage accidental losses. While this year proved challenging for many carriers, HAI Group returned $12 million in policyholder dividends, invested $2 million into our Loss Prevention Fund, and awarded more than $100,000 in higher-education scholarships to our residents.

Results like these don’t happen by accident. I’d like to thank the leadership team at HAI Group for making disciplined strategic decisions that balance both the needs of our membership and the future of our company. I’d like to thank our board and committee members for the tireless work you do on behalf of our organization, which benefits greatly from your involvement. Finally, I’d like to thank our members. Your commitment to our insurance company is a testament to how much you care about our mission and the important work we do. I’m honored to serve you.

Scott Bertrand Chair

2023 Board and Committee Photos

Board of Directors

Top row (left to right): Duane Hopkins, Ed Malaspina, Kevin Loso, Edwin Lowndes, Douglas Dzema, Jeffery Patterson (Vice Chair).
Middle Row (left to right): Ed Hinojosa, James DiPaolo, Scott Bertrand (Chair), Russell Young.
Bottom Row (left to right): Fernando Aniban, Jane Smith, Vince Pearson, Richard Browne.
Not Pictured: Mary Smith, HAI Group Outside Director

Audit Committee

Top row (left to right): Richard Browne, Kevin Loso, Duane Hopkins.
Bottom Row (left to right): Fernando Aniban, Jane Smith (Chair), Edwin Lowndes (Vice Chair).
Not pictured: Mary Smith.

Compensation Committee

Top row (left to right): James DiPaolo, Douglas Dzema, Jeffery Patterson (Vice Chair).
Bottom row (left to right): Ed Hinojosa, Scott Bertrand (Chair).
Not pictured: Mary Smith.

Enterprise Risk Management (ERM)

Top row (left to right): Richard Browne, Kevin Loso, Duane Hopkins.
Bottom row (left to right): Vince Pearson (Chair), Douglas Dzema (Vice Chair), Russell Young.
Not pictured: Mary Smith.

Finance Committee

Top row (left to right): Douglas Fleming, Vernon Lawrence, Richard Dowe, Carlos Laboy-Diaz, Raju Abraham, Herman Hill, Margaret Thomas.
Middle Row (left to right): Thomas Mackin, Fernando Aniban (Vice Chair), Diana Fiedler, Jessica Brittain, Tory Livingston, Lisa Walters, Carolyn Nichter, Thomas Henderson, Anthony Goodson Jr.
Bottom Row (left to right): Kenneth Clark, Duane Hopkins (Chair), Margarita Shif, Andrea Joyal.Not Pictured: Rebecca Bullock, Anthony Johnson, Kevin McCann, Elio Mena, John Neeb, Betsy Soto, Branden Underwood, Thomas Williamson, Mary Zissimos.

Governance Committee

Top row (left to right): Edwin Lowndes, James DiPaolo (Vice Chair), Jeffery Patterson.
Bottom row (left to right): Ed Hinojosa (Chair), Jane Smith, Scott Bertrand, Vince Pearson.

Insurance Committee

Top row (left to right): Michael McManaman, Kenneth C. Christie, Andrew Kerivan, Kevin Loso (Chair), Matt Mills.
Second Row (left to right): Sadyhe Bradley, Wilson Kimball, Shereen Goodson, Jeffrey Wade.
Third Row (left to right): Duane Hopkins (Vice Chair), Erica Snyder, Gloria Wright, Alissa Italiano, Orthneil Palmer.
Bottom Row (left to right): Trey George, Danielle Thomas, Carla Kangas, Karl Opheim.
Not pictured: Gwen Burston, Damaris Carbone, Shannell Hardwick, Stephanie Lovett, Blanca Macris, Mary Mayrose, David Northern Sr., Malisha Pate, Pamela Rogers, Cheyanne Spoto, April Thompson, Joel Tobin, Darrin Toney.

Sales, Marketing, Research Committee

Top row (left to right): Jeffrey Arn, Alexander Boston, Donald Emerson, Rick Moore, Kimberly Gholson, Lesley Foxx, Steven Sapp.
Middle Row (left to right): Arthur Harbin, Lisa Normandia, Lori Hoppe, Liane Ward, Nataline Jindoian, Aubrey Thompson, Shari Riddick, Kristen Carreon, Russell Young (Vice Chair), Fernando Aniban (Chair), Adam Ragsdale.
Bottom Row (left to right): Sharon Tolbert, Bonnie Latting, Laura Ryan, Christi McNeil.Not pictured: Anthony Ceoffe, Jalyn Clifford, Earline Davis, Jeremy Durham, Rick Whitworth.

2023 Financial Statements

Download the 2023 Financial Statements

2023 Snapshot

Our Companies

Housing Authority Risk Retention Group, Inc.
(HARRG)

HARRG provides liability insurance to public housing authorities. Available coverages include general liability, public officials’ errors and omissions, employment practices, law enforcement, lead-based paint, employee benefit, auto, hired and non-owned auto, mold, and terrorism. HARRG is owned by the members it insures. HARRG is a nonprofit, tax-exempt captive mutual risk retention group operating under the Federal Risk Retention Act, licensed and domiciled in Vermont. HARRG began operation on June 1, 1987, and was incorporated on March 20, 1987.

Housing Authority Property Insurance, A Mutual Company
(HAPI)

HAPI is a licensed insurer and reinsurer providing commercial property and liability insurance coverage to public housing authorities. Available coverages include property, inland marine, equipment breakdown, auto liability, physical damage, fidelity, crime, liability, and terrorism. HAPI is owned by the members it insures. HAPI is a traditional mutual insurer domiciled and licensed in Vermont. HAPI is licensed in 48 states and the District of Columbia. HAPI began operation on August 1, 1988, as a mutual association captive. HAPI converted its charter in 2003 to a nonprofit, tax exempt, traditional mutual insurer and issues policies on a direct basis. HAPI was incorporated in Vermont on March 20, 1987.

Housing Enterprise Insurance Company, Inc.
(HEIC)

HEIC is a licensed insurer providing commercial insurance and risk management programs to affordable housing providers. Available coverages include property, liability, inland marine, hired and non-owned auto, equipment breakdown, and terrorism. HEIC is licensed in 48 states and the District of Columbia. The company is jointly owned by HARRG and HAPI as a subsidiary. HEIC began operation in August, 2001, and converted its charter to a for-profit, admitted licensed stock insurer domiciled in Vermont on December 31, 2007. HEIC was originally formed as a sponsored captive insurer, Housing Enterprise Risk Services, Inc. (HERS), which was incorporated in Vermont on August 20, 2000.

Housing Specialty Insurance Company, Inc.
(HSIC)

HSIC is an excess and surplus lines insurer that provides a non-traditional insurance program to public and affordable housing providers throughout the United States. The company is jointly owned by HARRG and HAPI as a subsidiary. HSIC is a for-profit property and casualty stock insurer domiciled in Vermont on January 15, 2014. HSIC was incorporated in Vermont on December 9, 2013.

Innovative Housing Insurance Company, Inc. (IHIC)

IHIC is a captive insurance company owned by HARRG. It engages in the business of insuring and reinsuring various types of risks. IHIC is licensed and domiciled in Vermont. IHIC began operation on November 1, 2015, and was incorporated in July 2015.

Housing Investment Group, Inc.
(HIG)

HIG is responsible for investing in opportunities that further the missions of HARRG and HAPI. HIG is a downstream, for-profit business serving as an investment holding company owned jointly by HARRG and HAPI. HIG owns two taxable subsidiaries: HAGL and HIS. The financials of for-profit ventures have been consolidated since January 1, 1996. HIG was incorporated in Delaware in June 1995.

Housing Telecommunications, Inc. (HTI)

HTI is responsible for delivering training and education programs via the internet. HTI began operations on December 28, 1995, and originally delivered services via satellite broadcast and converted to web-streaming technology. HTI is a nonprofit organization
incorporated in Connecticut in September 1993.

Housing Authority Insurance, Inc. (HAI)

HAI sponsors programs for its membership, including insurance and risk management programs, scholarship and internship programs, and charitable activities. HAI advocates and supports legislative and regulatory issues that help improve the public and affordable housing industries. HAI is a nonprofit association incorporated in 1987.

Public And Affordable Housing Research Corporation (PAHRC)

Our research center strives to be the nexus for current data and research on public and affordable housing. The research is used to support the efforts of affordable housing stakeholders and to enhance the quality of life for low-income families. PAHRC collects primary data from the industry and compiles data from a variety of secondary data sources. PAHRC generates industry-specific reports and frequently works in partnership with industry groups in support of its stakeholders. PAHRC is a nonprofit organization incorporated in Connecticut in March 2011.

HAI Group® is a trademark for the property and casualty insurance operations of Housing Authority Risk Retention Group, Inc. All products and services are written or provided by subsidiaries or affiliates of Housing Authority Risk Retention Group, Inc. Products or services may not be available in all jurisdictions. Certain property and casualty coverage may be provided by a risk retention group or a surplus lines insurer or by a third party. Risk retention groups and surplus lines insurers do not participate in state guaranty funds and their insureds are not protected by such funds. For a complete list of HAI Group companies, visit visit www.haigroup.com.

HAI Group® | 189 Commerce Court, Cheshire, CT 06410 | Includes copyrighted information from a company under the HAI Group® family, with its permission.

A message from our president and CEO